5 Best Cosmetic Surgery and Aesthetics Stocks to Buy

2. InMode Ltd. (NASDAQ:INMD)

Number of Hedge Fund Holders: 26

InMode Ltd. (NASDAQ:INMD) is involved in the creation, advancement, production, and promotion of minimally invasive medical products for aesthetic purposes. These innovations are built upon the company’s proprietary technologies – radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency. InMode Ltd. (NASDAQ:INMD) also designs and develops non-invasive medical aesthetic products for multiple procedures. It is one of the best aesthetics stocks to buy. On July 27, InMode Ltd. (NASDAQ:INMD) announced a Q2 non-GAAP EPS of $0.72 and a revenue of $136.08 million, exceeding Wall Street estimates by $0.06 and $3.53 million, respectively.

According to Insider Monkey’s second quarter database, 26 hedge funds were bullish on InMode Ltd. (NASDAQ:INMD), in contrast to the last quarter when 34 funds had invested in the stock. Noam Gottesman’s GLG Partners is the largest stakeholder of the company, with approximately 1.1 million shares worth $40.55 million.

Here is what Alger has to say about InMode Ltd. (NASDAQ:INMD) in its Q3 2021 investor letter:

“InMode Ltd. was among the topic contributors to performance. InMode designs, develops, manufactures and commercializes innovative minimally invasive and non-invasive aesthetic medical products. InMode’s platforms harness novel radio frequency (RF) technology to enable emerging minimally invasive procedures that bridge the gap between temporary treatments like facials and more invasive surgical procedures like facelifts across several categories of surgical specialties such as plastic surgery, gynecology, dermatology, ophthalmology and otolaryngology (ear, nose and throat care).

The aesthetics market is seeing strong tailwinds coming out of the Covid-19 pandemic. These tailwinds include the “Zoom effect,” or dissatisfaction with one’s personal appearance after viewing one’s own face on Zoom, which has resulted in more people deciding to undergo aesthetic procedures. De-stigmatization of aesthetics procedures, aided by social media platforms, is also supportive of InMode’s results. Between the strong growth of its existing product lines and the anticipated launch of two new products, investors perceive InMode as being well positioned to capitalize on the broader strength of the aesthetics market, which is a key reason shares outperformed in the third quarter.”